Brazil Central Bank Statement on Interest Rate Decision (Text)

Following is a translation of the
statement by Brazil’s central bank on its interest rate decision
today.

“The Copom decided to reduce the Selic rate to 7.25
percent p.a., without a bias, by five votes in favor and 3 votes
for keeping the Selic rate at 7.50 percent p.a.

Considering the balance of risks for inflation, the
recovery of domestic activity and the complexity surrounding the
global environment, the committee understands that the stability
of monetary conditions for a sufficiently prolonged period of
time is the most adequate strategy to guarantee the convergence
of inflation to target, even if not in a linear fashion.